Thread: Getting wife's name off business registration.

A good friend of ours (Thai lady) is splitting with her boyfriend (farang) of 6 years.
They have a business in which she is the 51% owner but he runs things.
She is afraid now that he will not pay the taxes and leave her liable.
She wants her name off of everything.

Advice anyone on what she should do? (She has no idea)

I'm trying not to choose sides as I know and like both of them.
Just want to know what is the proper routine in a case like this.
Thanks

Originally Posted by fiddler

A good friend of ours (Thai lady) is splitting with her boyfriend (farang) of 6 years.
They have a business in which she is the 51% owner but he runs things.
She is afraid now that he will not pay the taxes and leave her liable.
She wants her name off of everything.

Advice anyone on what she should do? (She has no idea)

I'm trying not to choose sides as I know and like both of them.
Just want to know what is the proper routine in a case like this.
Thanks

Her shareholding is not a problem, responsibility for non-payment of Taxes, non-submission of Annual Accounts etc. is solely that of the Company Directors.

She should have their Accountant / Lawyer remove her as a Director and have her name removed from a Document called "Nang Sue Rab Rong", leaving only her husbands name on that document.

Patrick

Yep, a lawyer would seem the most obvious suggestion.

^ Agree, wouldn't do it any other way.

She had a meeting with her accountant yesterday so I showed her this thread.
I haven't seen her since but will ask what transpired.

By the way, there were 2 other posts on this thread that I saw the other day.
Now they are gone.
Can anyone tell me why? (if they were deleted for some reason by mods, I would think we would be told a reason.)
They were informative IMO. (but don't remember exactly what they said)

Originally Posted by fiddler

By the way, there were 2 other posts on this thread that I saw the other day. Now they are gone. Can anyone tell me why?

No, but it happens - someone will be along to enlighten us no doubt.

You heard about the constipated accountant - had to work it out with a pencil.

I wouldn't entirely rely on number crunchers when you need sound legal guidance.

OP is the business a money maker, or just a show company. If it's making money way would she want to give up on being the main share holder. Jim

Originally Posted by jamescollister

OP is the business a money maker, or just a show company. If it's making money way would she want to give up on being the main share holder. Jim

Not sure if it's a money maker or not.
It is my belief that she is an honest Thai and worried that she will end up having to pay money for something that doesn't' concern her. I take it that she doesn't trust him. But, I don't ask.

Originally Posted by fiddler

Originally Posted by jamescollister

OP is the business a money maker, or just a show company. If it's making money way would she want to give up on being the main share holder. Jim

Not sure if it's a money maker or not.
It is my belief that she is an honest Thai and worried that she will end up having to pay money for something that doesn't' concern her. I take it that she doesn't trust him. But, I don't ask.

As a Shareholder - even the majority Shareholder - your friend can only lose what she paid for her Shares. Even if the Company goes bankrupt owing money to suppliers etc. a Shareholder is not liable and cannot be sued for recovery of the Debt - a Director however IS responsible so she needs to resign as a Director and get her name removed from the Nang Sue Rab Rong.

That said she could still "lose" money in the sense that the remaining Director(s) - including, I presume, her boyfriend, could reduce the Company Profits by charging spurious expenses to the Company or, even if the Company makes a Profit, they can decide not to declare a Dividend so the Shareholders receive no payout.

As I say however, as just a Shareholder she is completely free of any responsibility for the Companys' operations.

Patrick

If it's a limited company (ie. Acme Co., Ltd) these she has limited liability. It's a specific company structure where individuals are protected from company debt, but she should ensure she's not nominated as the financial director or on the board. I'd think staying on the ownership papers might give her some leverage and claim to the company value - then the onus would be on the partner to get it legally sorted.